Arrow Electronics, through its wholly-owned subsidiary in Munich, Germany, is initiating an all-cash tender offer to acquire the shares of Data Modul, for a purchase price of €27.50 per share.
In conjunction with this tender offer, Arrow has entered into agreements with several shareholders of the company including the Hecktor family and Varitronix Investment Limited through which Arrow has secured the acquisition of approximately 37% of the nominal share capital of the company.
“This acquisition expands and strengthens our visual solutions capabilities and will broaden both our offerings and our geographic reach in this important market”, said Michael Long, chairman, president and CEO of Arrow.
Analyst Comment
This is an interesting story. The takeover by Arrow of the Data Modul Ag distribution business, which is the biggest display module distributor in Europe, we think, looks like a straightforward deal. Big distributors tend to get bigger. However, the deal will also mean, as far as we can tell, that Arrow will acquire the Conrac business, which had been re-named Data Modul Weikersheim. When that group changed its name, the sales organisation moved to Data Modul Ag and it started to operate as the production, logistics and service centre for the Munich group. Data Modul confirmed to us that the group in Weikersheim would be part of the Arrow organisation going forward. We are hoping to get more comment on this in the next few days and will report again. (BR)
